Pakistan's Reko Diq seeks $100 mn loan from US to develop mine in Balochistan

Export-Import (EXIM) Bank of the United States on Tuesday received an application for a loan worth over $100 million to develop the Reko Diq mine in Balochistan. The money will be utilised to develop an open-pit copper-gold mine as well as a processing plant, storage facilities, power generation, transportation infrastructure, and other related facilities needed to support the project. 

Besides a loan of over $100 million, the application also sought engineering, procurement and construction management services, mining trucks, feeders, grinders and related equipment from the US, the loan application stated. 

Commenting on the development, former US Treasury Secretary Evan A. Feigenbaum said: "Now, the United States can attempt to lose nearly as much money as China has lost on CPEC."

The development comes after US President Donald Trump assured Islamabad that Pakistan would receive its first crude oil shipment from the United States later this year. 

Earlier this month, Trump said that the US will help Pakistan develop 'massive oil reserves' soon after announcing 25 per cent tariffs on India. 

"We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their oil reserves," Trump wrote on Truth Social. He even went onto claim that Pakistan would sell oil to India some day. 

Pakistan does not have massive oil reserves. As per global energy data, Pakistan's proven crude oil reserves stand anywhere between 234 to 353 million barrels whereas India holds 4.8-5 billion barrels. While Pakistan ranks between 50th and 55th, India is in the early 20s for its proven oil reserves.